Reported 4 months ago
Converting a significant sum like $865,000 to a Roth IRA offers long-term tax benefits but typically incurs upfront tax costs. Strategies to reduce the tax impact include spreading the conversion over multiple years to prevent a higher tax bracket, leveraging lower income periods, utilizing tax deductions and credits, contributing to an HSA, and converting during market downturns to roll over a smaller amount. Consulting with a financial advisor for a personalized plan is recommended to maximize benefits and minimize taxes.
Source: YAHOO